VP

The markets in which VP works will often throw up a challenge, but the company’s spread of activities, from working on major infrastructure projects to hiring out plant and equipment, means it has built-in resilience.

However, these markets are all likely to grow steadily in the coming years and VP is in it for the long-term. The company has an excellent track record of profitability and steady financial returns as well as a decades-long record of dividend growth. 

VP has some exposure to the oil and gas industry through its Airpac Rentals subsidiary, which supports well testing, pipeline maintenance and Liquefied Natural Gas markets globally. Although sales to this industry represents less than 10% of revenue, there are carries environmental, regulatory and reputational risks associated with all fossil fuel operations.

Health and safety is another critical concern. Employees working in industrial environments face hazards from heavy machinery, moving equipment and electrical systems. While VP implements safety protocols and training, failures could result in serious injury, legal liability and operational disruption. Maintaining rigorous safety standards is essential to mitigating these risks.